NRI Investment

NRI Investment

Due to massive Industrial development which India has seen over the last two decades is attracting lot of FDIs (Foreign direct Investment). The Indian foreign exchange regulations consider the investments made by NRIs as “Foreign Investment”. India continues to attract foreign investors and NRIs as living in a foreign country has its advantages. An NRI works with developed economies of the world and earns in dollars. Many NRIs have a doubt that is living in a foreign country restricts them from investing in India, which clearly not the case.

So, let’s discuss the best available options for NRIs to invest in India and secure their future.

Why an NRI
should invest in India:

An NRI makes investment with the purpose of allocating money in order to secure future benefits or in financial context is known as returns. Investment gives current and future stability assurance, which is very important also as the life has become so unpredictable, every individual must secure their future by making investments.

Various Investment options
for NRIs in INDIA

To secure the finances people make investments all around the world. People always look for good investment options through which they can get higher returns in the future. But there are many Non-resident Indians who are working abroad, are unaware of the fact that if they are not physically living in India, but they can still invest their money in India.

So, below we have a list of few Investment option for NRIs in India:

Mutual Funds:

Mutual funds are not as risky as investing your money in stocks, at the same time they are also not as safe investing option as fixed deposit schemes. But they can offer returns at a much higher rate than bank FDs. You can find a large number of funds in the market to invest and you can choose any fund out of them as per your risk capacity and financial goals.

One thing to note that NRIs can invest in mutual funds only through their NRO or NRE Accounts and you can only invest in India Rupees and not in foreign currencies.

Public Provident Fund:

Public Provident Fund is a safe option of investment as it is a government-backed scheme. Under this scheme Non-residents and resident Indians both are allowed to invest in Public Provident Fund (PPF). The current rate of return has been fixed to 7.1%. There is a lock-in period of 15 years and also a limit of INR 1.5 lakh a year on investment. It also offers tax deductions under section 80C.

Various Investment options for NRIs in INDIA
preferable investment option
3. Real Estate:

The Indian Real Estate is the most preferable investment option for Non-resident Indians. Lately, India has become the most appealing destination for investments and has drawn global attention. The boom in prices of commercial and residential properties in India is also one of the reasons behind Indian real estate grabbing more and more attention of NRIs. Also, NRIs usually feel safe and emotionally connected by owning a land in their Motherland.

4. Government Securities:

Government securities are usually considered as a low-risk investment option. NRIs can also invest in Government securities through a separate channel introduced by the Reserve bank of India known as “Fully Accessible Route” (FAR) which allows NRIs to invest in specific government securities (g-sec). Govt. issues a bond or debt commitment with an assurance to pay back upon its maturity date.

5. Fixed Deposit:

Fixed deposit is no doubt a very common and simplest investment option for an NRI and it is not only popular among the Indian residents, but also among the Non-Resident Indians. NRIs can invest money into fixed deposits only through their NRO, NRE or FCNR accounts. Fixed Deposit scheme is offered by both banking & non- banking institutions and agencies.

6. Equity:

NRIs can also invest their money into Indian stock market through the Portfolio Investment Scheme (PIS). Therefore, an NRI first need to get an NRE or NRO bank account opened and also a Demat and trading account further to deal in equity in the Indian Stock Market.

How much to pay for
NRI Investments?

NRI Investments would start from INR 4999/-

Features At A Glance
Starting from INR ₹ 7499/-   ₹ 4999/-
All Inclusive Fees
  • Considering Double Taxation Avoidance Agreement (DTAA) before any investment
  • Determining whether the taxability of the investment
  • Calculation of capital gain and taxes thereon
  • Verifying taxes withheld in India
  • Expert consultancy with taxation experts
  • Investments in Real Estate, Mutual Funds, Bonds, IPO, Secondary Market, Derivative trading etc
  • Delegated Professional to coordinate exclusively to your case at a time.
  • Every NRI investment in India is governed by the regulations of Foreign Exchange Management Act (FEMA).
  • In India, NRIs are allowed to invest in Real estate, Fixed Deposits (FD), Mutual fund, Stock Market, Bonds/Government securities, Certificate of Deposits etc.
  • Such investment must include and designed with an equitable balance of trusted investment vehicles.
  • NRI investment in India helps them to diversify their investment well with multiple assets.
  • NRIs can avail of the benefit of lower tax rates under the Double Tax Avoidance Agreement between India and the country of their residence, as applicable.
  • NRIs have great investment options in India and if planned carefully, it can be a very fruitful post retirement.
Plan Offer

frequently asked questions

frequently asked questions
1. Can NRI buy a property in India?
Yes. An NRI can buy both residential as well as commercial properties in India.
NRIs can invest in Indian stock market directly under the Portfolio Scheme (PINS) of RBI.
(i) Bank Fixed Deposit
(ii) Premature Withdrawal
(iii) Post Office NSC (National Saving Certificate)
An NRI can acquire by way of purchase any immovable property in India other than agricultural land/plantation property/farm house.
Payment has to be received through banking channels and is subject to payment of all taxes and other duties levies in India. The payment can also be made out of funds held in NRE/ FCNR/NRO accounts of the NRI.
The investment should be in the Indian Rupee.
An NRI can only invest in Mutual Funds when they have an NRI Bank Account.
Yes. The government of India has allowed NRI to invest in Government Securities. RBI has also created a separate channel called ' Fully Accessible Route' for NRIs to invest in specified government securities without any restrictions along with the domestic investors.
NRIs are not allowed to gift mutual fund units or SIPs to their relatives in India.
NRIs need not any permission of the Reserve Bank of India (RBI) for investment in real estate in India. However, where the property is purchased by another foreign citizen of Indian origin, the funds towards the purchase should either be remitted to India or paid out of the balance in a NRE or FCNR account.

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